FTX, the recently collapsed cryptocurrency exchange, has proposed a payment plan to reimburse its creditors fully, and some of them will even get an add-on. The court has approved the plan stipulates how FTX will distribute between $14.5 billion and $16.3 billion in recovered assets.
However, this is an unexpected event because FTX filed for bankruptcy in November 2022. Back then, the exchange needed a significant amount of customer funds. The recovery plan and to get funds back from various sources like investments held by FTX affiliates and settlement deals with government agencies.
The plan prioritizes Non-governmental creditors among those who are going to receive full payment with interest. Furthermore, 98% of creditors by numbers, who are the owners of 50,000 dollars or less debt, will receive 118% of their claims within 60 days after approval of the plan.
This news has brought light to and hopes for FTX creditors who lost their funds during the collapse. Nevertheless, the plan is under the court’s supervision, and the specifics for the surviving additional to be disbursed through the “Supplemental Remission Fund” still require settlement.